An opt-out arrangement offered as part of a group health plan can provide significant advantages to employers. Through such an arrangement, employees who have alternative sources of coverage are incentivized to forego participation in the employer plan. In exchange for the waiver, the employee receives a (taxable) payment. However, recent developments - both regulatory and judicial - may undermine the effectiveness of opt-out arrangements in certain circumstances.

On June 30, 2015, the Wage and Hour Division of the U.S. Department of Labor (DOL) released a proposed rule to update overtime regulations under the Fair Labor Standards Act (FLSA). Specifically, the proposal will update the definition that determines which white collar workers are eligible to receive overtime pay.

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A top-tier company in California, Filice has been serving the employee benefits needs of Californian's for over 25 years. Discover the difference our experience and commitment can make for your company.